BUSINESS

First Tanker Crosses Strait of Hormuz Since Iran’s Closure Threat

Published: Mar. 4, 2026 12:44 a.m. GMT+8

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Merchant ships anchored off the coast of the United Arab Emirates on March 2, 2026, after Iran announced the closure of the Strait of Hormuz. Photo: IC

A small Singaporean tanker navigated the Strait of Hormuz on Tuesday, becoming the first fuel carrier to traverse the strategic waterway since Iran declared it closed and threatened to strike passing vessels.

The 7,000-deadweight-ton Puffin Two, owned by Consort Bunkers, crossed into the Persian Gulf at 2 p.m. local time. The vessel kept its automatic identification system active throughout the voyage from Fujairah to Jebel Ali and was carrying marine fuel rather than crude oil. A container ship, the SSF Leo, also transited the strait the same day, but shipping data show the vessel is linked to an operator under U.S. sanctions for close ties to Iran.

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The Strait of Hormuz remains largely blocked after Iran's closure, with vessel numbers and cargo volume dropping by 96% and 99% respectively as of March 2, 2024.
Over 150 tankers, including 22 VLCCs, are stranded, and VLCC charter rates on the Middle East–China route have hit a record $424,000 daily, up 94% since Feb. 27.
Major container lines suspended sailings, and insurance costs have surged, prompting severe supply threats during Ramadan.

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Who’s Who

Consort Bunkers: Consort Bunkers owns the Puffin Two, a 7,000-deadweight-ton Singaporean tanker. The Puffin Two was the first fuel carrier to traverse the Strait of Hormuz after Iran had declared it closed. It crossed into the Persian Gulf carrying marine fuel from Fujairah to Jebel Ali, keeping its automatic identification system active throughout the voyage.

Cosco Shipping Technology Co. Ltd.: Cosco Shipping Technology Co. Ltd. provided data showing a significant decline in vessel traffic through the Strait of Hormuz. On March 2, only five vessels, carrying 161,000 tons of cargo, passed through the strait. This represents a 96% drop in vessel numbers and a 99% decrease in cargo volume compared to pre-war levels.

Maersk: Maersk has suspended sailings through the Strait of Hormuz due to the deteriorating security situation. This decision comes after Iranian attacks on several vessels in the critical oil chokepoint, leading to significant disruptions in global shipping and soaring freight rates.

Cosco Shipping: Cosco Shipping has suspended sailings through the Strait of Hormuz due to heightened security risks following Iranian attacks on vessels. Data from their technology arm shows a significant drop in vessel numbers and cargo volume passing through the strait. This suspension contributes to the broader paralysis of traffic in the critical oil chokepoint.

Hapag-Lloyd: Hapag-Lloyd, a major container line, has suspended its sailings through the Strait of Hormuz due to the deteriorating security situation. This decision is in response to Iranian attacks on several vessels and the significant risks involved for shipowners.

Ocean Network Express (ONE): Ocean Network Express (ONE) is one of the major container lines that has suspended sailings through the Strait of Hormuz due to the deteriorating security situation. This decision highlights the significant disruption to shipping operations in the strategic waterway.

CMA CGM: CMA CGM (达飞轮船) is a major container line that has suspended its vessels from using the Strait of Hormuz. Despite this, they continue to call at Red Sea ports. The company has also implemented an emergency conflict surcharge of up to $4,000 per container due to the disruptions.

Amazon: Amazon is mentioned as a platform for cross-border sellers. These sellers face potential significant shortages during Ramadan if the conflict in the Strait of Hormuz prevents them from replenishing inventory by sea. Limited airfreight capacity cannot fully compensate for this disruption.

Noon: Noon is an e-commerce platform that employs cross-border sellers. These sellers face significant shortages if the conflict in the Strait of Hormuz lasts more than a month due to the inability to replenish inventory by sea, a shortfall that limited airfreight capacity cannot fully offset.

Gard: Gard is one of the major protection and indemnity clubs that informed its members on March 2 that they were canceling existing war-risk coverage for Iranian waters and the Strait of Hormuz. This was done to establish new rates and terms for insurance in the area.

Skuld: Skuld is one of the major protection and indemnity clubs (P&I clubs) that informed its members on March 2 about the cancellation of existing war-risk coverage for Iranian waters and the Strait of Hormuz. This move was made to facilitate the setting of new rates and terms for war-risk insurance due to the escalating security concerns in the region.

NorthStandard: NorthStandard is one of the major protection and indemnity clubs among others such as Gard and Skuld. On March 2, NorthStandard informed its members about the cancellation of existing war-risk coverage for Iranian waters and the Strait of Hormuz. This decision was made to establish new rates and terms for insurance in the region, which has seen a sharp deterioration in security.

Marsh: Marsh (达信) is an insurance broker that previously estimated war-risk insurance premiums for the region could rise to 0.5% of a vessel's value, or about $375,000 per voyage for a $100 million ship. However, market participants suggest the actual cost is likely to exceed these estimates due to recent attacks.

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What Happened When

February 27, 2026：: Reference point for daily charter rates for VLCCs on the Middle East–China route before the surge.

March 2, 2026：: Only five vessels carrying 161,000 tons of cargo passed through the Strait of Hormuz, a 96% drop in vessel numbers and 99% drop in cargo volume from prewar levels according to Cosco Shipping Technology Co. Ltd.

March 2, 2026：: Daily charter rates for VLCCs on the Middle East–China route surged to a record $424,000, up 94% since February 27, 2026, according to the Baltic Exchange.

March 2, 2026：: Major protection and indemnity clubs, including Gard, Skuld and NorthStandard, informed members that they were canceling existing war-risk coverage for Iranian waters and the strait in order to set new rates and terms.

As of March 2, 2026：: More than 150 tankers were anchored at either end of the strait, including 22 VLCCs inside the Persian Gulf, accounting for about 9% of available global capacity, according to Lloyd’s List.

March 3, 2026, 2 p.m. local time：: The Singaporean tanker Puffin Two became the first fuel carrier to cross the Strait of Hormuz since Iran declared it closed, marking a rare breach of the blockade. The SSF Leo container ship also transited the strait the same day.

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